Which of the following items (that all generate future economic benefits, and whose costs can be
measured reliably), is an intangible non-current asset?
1 Computer hardware owned by a business
2 Operating software that operates the computer hardware in (1)
3 A patent bought by a business
4 An extension to an office building owned by a business
A All four items
B 1, 2 and 4 only
C 1 and 2 only
D 3 only
hello Sir l consider the answer is 2 and 3 but has been taken only 3
why?
furhermore,l need your explanation about whether software is tangible or intangible non-current asset?
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non-current assets
7y ago#1Because the operating software is needed to operate the hardware, it is regarded as being part of the cost of the hardware and is therefore treated as a tangible asset - the hardware would be useless without the operating software (e.g. Microsoft Windows).
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